The US dollar was a touch firmer across the board on Monday, but it continues to trade within a well-established range. The cash Dollar Index has found support around 97.50, and this area gets tested whenever there’s news or speculation suggesting progress between the US and Iran to bring about an end to hostilities.
On the flip side, the Dollar Index has been held in check below 99.00 as sellers emerge in some force every time it tries to break out to the upside. Of course, the most significant area of resistance comes in at 100.00. But the Index must break above 99.00 first, and with some conviction, if it has any chance of pushing up further.
Friday’s better-than-expected Non-Farm Payroll data saw the probability of a rate cut before year-end fade a touch. The likelihood of no-change this year stood at 74% this morning.
The USD/JPY climbed back above 157.00 as an increase in geopolitical risk boosted demand for the US dollar. President Trump described Iran’s response to last week’s one-page memorandum as: “TOTALLY UNACCEPTABLE!” However, speculation concerning further intervention from Japanese policymakers to support the yen, along with expectations for another Bank of Japan rate hike, limited gains.
Source: TN Trader
